Crypto markets saw a much-needed bounce on Monday with bitcoin rises to $115,200, while ether traded at $4,160.
The increase can be attributed to expectations around Wednesday’s Federal Reserve meeting, where an interest rate cut is expected.
Bitcoin dominance continues to rise to demonstrate relative weakness across the altcoin market, although there were some outliers on Monday in the form of and .
Derivative positioning
By Jacob Joseph
- BVIV, which measures BTC’s 30-day implied volatility, has fallen to 44% year-on-year, nearly reversing the rise on October 10 in a sign of easing market stress.
- The bias for Deribit-listed BTC put options has weakened across all tenors. However, longer duration risk returns still remain slightly neutral to bearish. The same can be said for ETH, although the bias for ETH puts in the short end is still slightly larger than BTC.
- Last week, traders continued to sell topside (calls) on the CME to collect premium and generate returns on their BTC longs.
- Open interest in futures linked to most cryptocurrencies, excluding XRP, HYPE and HBAR, has increased in the past 24 hours, indicating capital inflows amid the price rally.
- Although bitcoin prices have climbed past their October 21st high, overall open interest in USDT and USD-denominated perpetual futures on major exchanges remains below the levels seen on October 21st. This divergence suggests that leveraged trader participation in the recent BTC rally has been limited.
Token Talk
By Oliver Knight
- Crypto market jumps ahead of Wednesday’s Federal Reserve rate decision reflected across the entire altcoin sector, with e.g. and with double-digit gains.
- There was also a notable increase in tokens issued in or before 2018 as and both increased by 8% and 9.5% respectively, while ether returned to bullish territory with a rise to $4,150.
- The reversal in price action could not be felt in two recently released tokens; plasma and asters both collapsed further to the downside as slowing demand failed to quell wave after wave of selling pressure.
- Plasma initially rose to as high as $1.67 in the days following its launch, reaching $3.3 billion in daily volume in the process. However, it is now trading at $0.36 and the daily volume is down to $297 million.
- Aster, meanwhile, is trading at $1.07 after losing 43% of its value over the past month. It was initially positioned to be a rival to decentralized derivatives exchange HyperLiquid, but the hype has since withered away following concerns about the legitimacy of trading volume on the platform.
- Bitcoin dominance ticked up slightly to 59.1% on Monday, up from a low of 57.1% six weeks ago, suggesting investors still prefer the more measured gains of BTC compared to more speculative altcoin bets.
